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The short answer
An RESP does not close because your child goes to study in Nigeria. A Nigerian university counts as a post-secondary institution outside Canada if the student is enrolled full time in a course of at least three consecutive weeks, so educational assistance payments (EAPs) can still be made. The catch is the government money: the CRA's RESP guide says a beneficiary must be a resident of Canada to receive the Canada Education Savings Grant (and Canada Learning Bond) as part of an EAP, so a child who becomes a non-resident on moving to Nigeria risks losing the grant portion.
Many Nigerian Canadian parents save in an RESP from the day a child is born, then find the child wants to study medicine in Ibadan, law in Lagos or engineering at a private university near Abuja. The plan can follow the student, but not every part of it moves on the same terms. This article sets out what the CRA's RESP guide (RC4092, modified 23 October 2026) says about study outside Canada, how residence affects the grants, and what to sort out before the move.
The three parts of an RESP
It helps to separate the money in the plan, because each part has its own rules when a student leaves Canada:
| Part | Where it came from | What happens when it is paid out |
|---|---|---|
| Contributions | Money you, the subscriber, put in | Your own money; ask the provider how it pays it back to you or to the student |
| Government grants | Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), any provincial grant | Paid to the student inside an EAP only if the rules are met, including residence |
| Growth | Investment income on the whole plan | Paid to the student inside an EAP, or to you later as an accumulated income payment |
An EAP is the payment made to the student out of the grants and growth. The CRA guide says students must include EAPs in their income for the year they receive them.
Does a Nigerian university qualify?
RC4092 defines a post-secondary educational institution outside Canada. For a university, the student must be enrolled full time in a course of not less than three consecutive weeks. For other institutions outside Canada (colleges, polytechnics, professional schools), the course must last not less than 13 consecutive weeks. A full-time degree at a Nigerian federal, state or private university will normally pass the university test easily; the detail is covered in can RESP money pay for a Nigerian university?.
The programme also has to be a qualifying educational programme (at least three consecutive weeks, with at least 10 hours a week of courses or work) or a specified educational programme (at least three consecutive weeks, at least 12 hours a month of courses). The RESP provider checks this from the enrolment evidence you send.
The residence problem for grants
This is the point most families miss. RC4092 says: a beneficiary must be a resident of Canada in order to receive the CESG and the CLB as part of an EAP. A student who moves to Nigeria for four or five years may stop being a Canadian resident for tax purposes, depending on the ties they keep. If that happens, the grant portion may not be payable to them.
Residence is a question of facts, not of citizenship. A student who keeps a home with parents in Canada, returns every summer, keeps a Canadian bank account and health coverage, and goes to Nigeria only to study may be treated differently from one who settles there. The CRA decides on the facts; see tax residence in both Canada and Nigeria for how ties are weighed. Provincial grants have their own residence rules, and the CRA guide tells you to ask the province. The plan belongs to you, the subscriber, not the student. If you later move to Nigeria as well, the CRA's page on dispositions of property for emigrants lists RESPs among the property excluded from the deemed sale on leaving Canada.
Practical ways families handle it
- Ask the RESP provider for EAPs early, while the student is still clearly resident in Canada, for example in the first term after enrolment.
- Keep evidence of the student's Canadian ties (address, return travel, accounts) in case the provider or CRA asks.
- If grants cannot be paid, find out from the provider what is repaid to the government and what remains as growth and contributions.
How much can be paid at the start
The guide caps EAPs at the start of a programme:
- Qualifying programme (full time): up to $8,000 for the first 13 consecutive weeks.
- Specified programme (part time): up to $4,000 for the 13-week period ending at the time of payment.
After the first 13 weeks of full-time study the cap no longer applies in the same way, subject to the provider's own rules. Example: a plan holds $30,000 of contributions and $14,000 of grants and growth. In the first 13 weeks at a Lagos university, the provider can pay at most $8,000 as an EAP; the rest of the grants and growth can follow in later instalments, and contributions can be returned separately. Figures are illustrative.
If your child does not go on to study
If the beneficiary does not pursue post-secondary education, RC4092 says the CESG is returned to the government. The growth can be paid to the subscriber as an accumulated income payment (AIP) if the plan meets conditions: the payment is made after the year of the plan's ninth anniversary and each beneficiary is at least 21 and not currently eligible for an EAP. AIPs carry an additional 20% tax (12% in Quebec) on top of normal tax, and you can reduce the taxable AIP by transferring up to a lifetime $50,000 to your RRSP if you have room.
What to check first
- Confirm with the university that the course is full time and get an official admission or enrolment letter.
- Ask your RESP provider what proof it accepts from a Nigerian institution and how long payment takes.
- Work out whether your child is likely to stay a Canadian resident during the degree.
- Plan the timing of EAPs around that answer.
- Plan how fees will reach the university; see schooling a Canada-born child in Nigeria for the money side.
Where Pryme fits
Nigerian universities and landlords are paid in naira. A Pryme Personal account can hold naira, US dollars, pounds and euros, and Send pays fees to a Nigerian account with the rate and fee shown before you approve. The student can generate verifiable receipts through VerifyDoc.ai as a record of what was paid. This is information, not tax advice.
Questions people ask
Can RESP money be used to study in Nigeria?
Yes. The CRA treats a university outside Canada as eligible if the student is enrolled full time in a course of at least three consecutive weeks, so a full-time Nigerian degree normally qualifies.
Will my child lose the CESG if they study in Nigeria?
Possibly. The CRA says a beneficiary must be a resident of Canada to receive the CESG as part of an EAP. If the student becomes a non-resident, the grant portion may not be paid.
How much RESP money can my child take out in the first term?
Up to $8,000 in the first 13 consecutive weeks of a full-time qualifying programme, or $4,000 per 13-week period for a part-time specified programme, per CRA guide RC4092.
What happens to the RESP if my child does not go to university?
The CESG goes back to the government. Growth may be paid to you as an accumulated income payment, taxed with an extra 20% (12% in Quebec) unless reduced by an RRSP transfer of up to $50,000.
Sources
- Canada Revenue Agency: RC4092 Registered Education Savings Plans (modified 23 Oct 2026) · accessed Oct 2026
- Canada Revenue Agency: Dispositions of property for emigrants (modified 20 Jan 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.